On this episode of the Fresh Fit Podcast, we have a special guest on the show, Smitty. Smitty is a Senior Entrepreneur who has been with us for a long time now and has a lot of experience in the business world. He is also a former NBA player who played for the Chicago Bulls and played in the NBA All-Star game. Smitty talks about growing up in the suburbs of Chicago and how he was able to break out of the streets and make it to the big league. He also talks about how he got his start in business and what it took for him to get to where he is today. We hope you guys enjoy this episode and it helps you get started with your business or any business you may be working on. Shout out to our sponsor, Rambler. Also, as you guys know, as the home base for us, we did a great Zoom Call yesterday with the guys at Castle Club and we will post it on Castle Club for you guys very soon! We did a Zoom Call with David Green and we are going to be doing a live call with him as well! We ll be posting it on Castle Club very soon, so be sure to check it out! Thank you for supporting the show! - The FreshFit Podcast! . - Smitty and David Green - Thank you so much for being a part of The Fresh Fit Family. . . . - Cheers! Cheers, Cheers. - Your Support is SO MUCH CHEats Podcast! Cheers!! - S&F Podcast! - - D1 Podcast - CHECK OUT! - CHEERS - CHEE CHEE! - S/A - MONEY MODE Podcast - CHIEF Podcast - CHEFS Podcast (featuring Smitty & David Green - CHECKOUT CHEED - CHODODCAST - CHOODO CHEODODO - CRY Podcast - YO CHEEODO - CHOO CHOOT CHOOOTCH CHO CHOCHO CHOOCHOOT - CHOW CHOOCCHOCHEODO BABY CHOOK CHOKEODO (CHOKEE CHOOO CHODO) - CHOCO (YOKEED) - SONGS, CHEOT CHEOCO
00:09:09.000Your business mindset, how did you acquire it and get into business funding itself?
00:09:12.000Yeah, so a friend of mine started first.
00:09:15.000A friend of mine got into learning about just business in general.
00:09:18.000Then he learned about credit and business credit and stuff like that and got into real estate.
00:09:22.000So he tried to tell me about it and I just kind of blew him off for a while until he actually did it himself.
00:09:28.000So what he did was he got approved for like two or three credit cards in like a week span and got like $40,000, $50,000 in like three days.
00:09:36.000So then that's like a light bulb in my head.
00:09:38.000I'm like, bro, I've been trying to save $50,000 and $40,000 for the last two, three years and I still haven't been able to do it, but you was able to get approved for $40,000, $50,000 in two days?
00:09:46.000All right, whatever that is, all right, we're going to learn that.
00:10:30.000So the route that I take is like we can get no doc business credit cards, and I'll be able to stack them up to be able to get access to your first $100,000 or $200,000.
00:10:38.000And that route, I like it better because everybody more likely can get a good credit score and just an LLC, and we can be able to get you your first round of funding that way.
00:10:45.000What are some top no-doc credit cards you recommend?
00:10:48.000Man, Chase has the best one right now.
00:10:51.000You hear about the Chase money glitch?
00:10:52.000Yeah, I heard about all that crazy stuff.
00:11:09.000Can you explain to the audience real quick the difference between a regular credit card and a no-dot credit card or business card that you're describing?
00:11:20.000Because a credit card, meaning no documentation, I can go in a bank, I can get a credit card with a limit on it, And they're not gonna ask me for any proof of income or documentation.
00:11:30.000I fill out my application and I get my approval based upon what I stated on my application.
00:12:34.000It's because your profile is too thin.
00:12:36.000It's way too thin for them to trust you for $25,000.
00:12:40.000It's like you haven't been trusted enough for us to be able to give you $25,000.
00:12:43.000So you need to be able to build out a thicker profile with more different accounts, a different mixture of different type of accounts so they can see you be able to prove yourself that you can pay companies back before they give you this money.
00:12:56.000What's like an example of like one of those structures?
00:13:00.000Yeah, so like an auto loan is a good account.
00:13:02.000One that a lot of people don't know about is like you can get your rent reported on your credit report and you can get it backdated for a few years.
00:13:08.000So now all those histories of all those months you've been paying your rent, you don't get no benefit from your credit report.
00:13:14.000There are companies out here like Rent Reporters or Rental Karma that allow you to report your rent on your credit report and backdated for years of time that you've been paying it.
00:13:21.000So you can get that added on to your credit report.
00:13:23.000That's an amazing account to add on, you know what I mean?
00:13:29.000So, like, self-kick-off, CreditStrong, these are credit builder accounts that people can start with, you know, and then, like, installment loans, credit cards, auto loans, mortgages, these type of things on your credit report makes it strong enough so now that they can trust you.
00:13:44.000Would it be fair to say that a 720, where you have an auto loan, a home loan, maybe some other type of big loan, is better than having a 760 credit score with just...
00:14:20.000Oh, well, you got to wait to get your, receive your card in the mail, probably five to seven business days, but it's instantly approved right then or it take like three to five days for an approval to come back and then you go with your card in the mail.
00:15:07.000All right, and you said LLC properly structured.
00:15:09.000Yeah, properly structured, meaning not your regular email, not your regular cell phone, not your home address, but a business address, a business phone number, a business email so that the banks can...
00:15:19.000You want to look as good as on paper as not.
00:15:21.000How long do you have to be incorporated, do you think, for them to not raise any?
00:15:28.000Because the strategy I use is called personal guarantoring the money, meaning we're going to allow them to pull our credit on our personal side to give us the approval based upon just trying to use our LLC for the approval by itself.
00:15:53.000That's why we can be able to get a $25,000, $50,000 credit card right now today with day one on our LLC because we're going to personal guarantee it with our personal credit.
00:16:28.000But then you'll come to me, and then now this is where I help you.
00:16:32.000This is where I do a done-for-you service, and I'll get your business funded for you, so you don't have to worry about knowing what to do, how to do it.
00:16:37.000You don't have relationships with people inside the bank like I do.
00:16:40.000You don't know what credit cards I go get.
00:16:42.000You don't know strategically how to apply for them the correct way to get you the max.
00:16:57.000So there's some people out here that I've seen get approved for Chase Credit Cards, and they get approved for $2,000 or $3,000, $4,000 limits.
00:17:02.000And it's because they're applying online like the masses.
00:17:11.000So I'll give y'all some game on how I get high limit credit cards.
00:17:15.000So I've built relationships with bankers inside the bank, but at a high level.
00:17:19.000So it's called business relationship managers.
00:17:21.000These are the people who handle the underwriting and the push through of the applications for the business credit cards and the lines of credit.
00:17:27.000So I have personal connections with these people, and I have my reps push through my applications for me or my clients so that we have a different type of algorithm of approvals than the normal, you know, type of client.
00:17:50.000So when you talk about them big limits, it's not that many people out here that can be able to get those $50,000, $80,000 on one credit card unless you go, you know what I mean, and have those relationships.
00:18:45.000So we'll say something like, we're about to hire a marketing team to be able to put more advertisement to our business.
00:18:52.000We need access to this amount of money so we can put this into our business so it can grow.
00:18:55.000Now the banks are like, oh, wow, yeah, you got the credit score, you got the LLC, you got a good plan.
00:18:59.000Okay, let's extend him a higher limit than normal because this type of push-through.
00:19:04.000Now, with this type of, do you recommend people go ahead and take cash arbitrage, pull money off of these cards, or should they always keep it strictly to credit, just swipe the card, don't try to pull cash off of it?
00:19:41.000So I'll put you on some game of what I set up for my business and my client.
00:19:45.000So with ADP, we can put ourself on payroll, right?
00:19:49.000Meaning we can pay ourself from our business, all right?
00:19:52.000What we do is, instead of the money getting taken out from our business bank account, why don't we get the money to get taken away from our business credit card?
00:20:02.000So now, the payout from ourself, right, from our business to ourselves, so for mine's a Smitty Wealth Enterprise to Kenny Smith, right?
00:20:11.000If I put myself on payroll for $10,000 every two weeks, I can leverage a third-party company called Zill Money, and they'll allow me to leverage my business credit card as their payout from my business to my personal self.
00:20:23.000So now I can liquidate $10,000 every two weeks from my business credit card into my personal bank account cash, and I can go to the bank and take it out if I want.
00:20:31.000That's a strategy we use to also create proof of income for yourself, also prepare yourself for taxes, and you can be able to liquidate your business credit card like that as well.
00:20:40.000Do you have to deal with, like, because a lot of these business credit cards sometimes have, like, fees and penalties, you know, for doing that.
00:20:46.000Doing this intermediary process that you described, do you get the same fees?
00:23:33.000If I can purchase a $2 million business, like a store-specific, that's cash flowing already too, $30,000 a month, $40,000 a month, and I'm coming in with leveraging my credit, my business credit, to put the 10% down, I'm acquiring a $1.5 million business or a $2 million business with no money out of pocket.
00:24:18.000So, the business credit cards that we go after give you anywhere between 12 months to 18 months of 0% interest.
00:24:24.000Meaning, when you borrow the money off of these credit cards, $25,000, $50,000, when you take the money off, you got to pay a minimum balance, maybe $100, but $150.
00:24:34.000They'll literally allow you to borrow $100,000 and probably pay back $700 a month or something like that.
00:24:39.000So we're borrowing that money at 0% interest for a year or two years sometimes.
00:24:49.000So meaning, I don't have to pay them back more than I borrow.
00:24:53.000Once I borrow the $100,000, if I could be able to do what I need to do within that year or year and a half, I pay them back $100,000, that's it.
00:25:03.000Because you're using someone else's money to acquire an asset so that you can make some cash flow and then you pay them back with zero interest.
00:26:40.000And then you No, that's kind of the end of it.
00:26:42.000It's just, that's how it would work if we were to use it.
00:26:44.000If I were to go use a 7-day loan, if I'm trying to purchase something like a big purchase like that, I would leverage this SBA loan for something like that.
00:26:50.000That's like a perfect example of what I would use a SBA loan for.
00:26:54.000Okay, you would use it to acquire a real estate property?
00:26:58.000So you wouldn't use it, would you use it to like buy like a, I mean, I guess you could like go buy a brick and mortar business, but- Possibly.
00:27:04.000Yeah, but real estate is probably a safer bet, right?
00:28:41.000So, the cash flow of the business, they're going to look at the NOI and all that stuff.
00:28:44.000They're going to be looking at that stuff too, yeah.
00:28:45.000Yeah, so that's gonna make it make it make sense for them to you just not do anything.
00:28:49.000Okay, so I guess that's good to know that like if you have a good idea they'll fund it but at the same time if you come with some bullshit like oh I want to buy this um I don't know this this failing business here this restaurant that's negative.
00:29:02.000It depends you know I mean so they have that conversation with the person and then y'all negotiate you know I mean they're gonna see all your documentation and see if you can afford these type of things you're trying to get into and things of that nature so Okay, but that's probably one of the better loans you would say, if you got your documentation right.
00:29:47.000Because you can get 100 from the credit cards, that'll be your 10% down payment, and then the SBA gives you the rest and you have no money in the deal.
00:30:26.000So Bam and Kevin talked about shelf corporations, right?
00:30:29.000He came in here, gives a podcast as well about some game.
00:30:32.000How does that work with shelf corporations?
00:30:34.000Yeah, so right now we got connection to wholesales of shelf corporations.
00:30:38.000So basically what a shelf corporation is, think of it as just an aged business, an aged LLC. So we were talking about a new business earlier, how we could get a new business funded, right?
00:30:49.000But the banks reward you and give you higher limit approvals with credit cards, lines of credits, and loans if your business has been established for a longer period of time.
00:31:00.000So there are businesses out here that people don't use anymore or maybe got dissolved because they couldn't keep up with the yearly annual.
00:31:07.000So there's so many different ways of why they can be able to want to give it away or not use it anymore, but we can purchase them.
00:31:13.000So let's just say you had an LLC for 10 years.
00:31:16.000You haven't paid or you want to sell it or something like that.
00:31:18.000You're like, I don't care about this LLC. Give me a thousand bucks.
00:31:21.000You can have my 10-year-old LLC. Now, I don't know why nobody would do that.
00:31:24.000But there's some people out here that just be getting them dissolved.
00:31:27.000I could purchase that business from you and transfer it to my name.
00:31:30.000Now I have a 10-year-old corporation business.
00:31:37.000So now I'm going to the bank as a 10-year business versus a one-day-old business.
00:31:41.000And then now I attach my personal credit that's at $750 with a 10-year-old LLC. And now I'm eligible for access to more capital than I was when I had a business that had been open for a year.
00:31:53.000So there are some banks that allow you to get lines of credit now.
00:31:56.000So now I go in a bank and I'm getting a business credit card for $25,000 and I'm getting a line of credit for $50,000.
00:32:02.000Now I'm walking out the bank with $70,000.
00:32:04.000Can you explain to the audience the difference between having a line of credit versus having a credit card?
00:32:39.000So it's basically, think of it, guys, as a bank account that isn't really yours, but you can pull from it at any time, but you have to pay back it.
00:32:46.000Are the interest rates fair depending on the bank?
00:38:58.000And also, if you're on Castle Club watching or on Rumble, also open up a tab, twitch.tv slash freshandfitpodcast, all right?
00:39:04.000As I need more work trucks and equipment for my construction company, should I save up and pay cash so I don't have to worry about payments, or should I finance them and bet on myself that I will bring the capital every month?
00:39:21.000So me personally, I'll go get the money myself and go fund my own trucks and make all the money myself versus trying to have them dip into my money.
00:39:29.000Because we work hard for our money, bro.
00:39:30.000We're not going to keep letting somebody else dip into our pockets.
00:40:20.000But yeah, so they're asking, recommend using business funding for day trading stocks and So some of my members in my groups and stuff like that, they do.
00:40:29.000They like, I'm here to learn this game so I can get some money if I can go trade with it.
00:40:33.000They like, man, if I would have had access to more capital, I could be making way more money.
00:40:36.000They like, I learned the game, I didn't learn the setups, my stuff is hidden, but I just don't got access to enough capital to make a lot of money because I think they'd be conservatively trading.
00:41:36.000People are asking me, like, how do I start the lending business, the funding company that I run myself?
00:41:41.000How do someone else get to start that?
00:41:43.000So now my main focus is now corely teaching people how to start their own lending and funding business because not a lot of people that look like me that own these things or run these type of companies.
00:41:53.000So now I want to open up the floodgates for everybody to learn exactly how to start, scale, and grow their own funding business.
00:41:59.000So now I want to teach them the model of how to set it up, a system to use.
00:42:05.000And then use the same strategies I use to get people funded to start their own business to make anywhere between $5,000 to $25,000 per client.
00:43:33.000Yeah, guys, so we're going to stay live on Rumble, though, guys, so don't get it twisted.
00:43:36.000We're still going to be live on Rumble.
00:43:37.000We've got most of y'all over there on Rumble, like 3,000 plus y'all, and then we've got another 1,000 on YouTube, then a couple hundred on Twitch.
00:43:43.000So, guys, we're going to come on over, switch over to Twitch.
00:43:44.000We're going to end the YouTube stream here.
00:45:13.000I've always told people using cash is probably one of the stupidest things that you can do in today's day and age with all the credit perks that you get with these credit cards, right?
00:45:21.000And then like, you know, the 18-month APR, you know, 0% APR, you know, the rewards, you can literally like make a bunch.
00:45:30.000Especially when you're like using these cards the way that you because do you when you liquidate the well some cards let you get points off and then some don't when you liquidate the cards when you use them Yes, but technically yes when it my strategy you do you get the rewards.
00:46:14.000Bro, when I spend $50,000, $100,000 on advertising every month, they give me 4x, 5x, I'm getting $400,000, $500,000 reward points every month.
00:46:57.000So you've been doing this business for a while now.
00:46:59.000When do you know it was going to blow up or when did it blow up for you?
00:47:02.000I think it started blowing up when the social media started getting some of the clips of some of the things I was saying and it was going viral.
00:47:10.000You know, and then also word of mouth.
00:47:29.000If they see somebody, they're conversating, they're mentioning me to get into my thing.
00:47:32.000So just going viral on social media, word of mouth with the people that already got results from me has been in my growth spurt pretty fast.
00:47:40.000Because again, we don't learn this in school.
00:47:41.000So I think for most people, this is like a revelation because now with this information, I can get a business like that.
00:47:52.000So what would you say, like, for your average student in the beginning, right, working with you or whatever, how much are they getting off of their, you know, their first, I guess, funding run?
00:48:01.000Yeah, so, wait, so two different things.
00:48:04.000When they start their own funding business or they're getting funded for themselves?
00:48:06.000Funding for themselves with their business, whatever it may be, and then you could go ahead and save for the funding business.
00:48:10.000So, if they meet the requirements on a personal credit score in the LLC. 2K in credit, 700 credit score, LLC properly structured, and I think the fourth thing you said is have at least a car or a home loan.
00:48:48.000You come to us, that's around the average everyone's going to get.
00:48:52.000Now, if you've got a better credit score, you've got documentation or something, or you've got a longer, older business, now we're looking $250,000 to $400,000.
00:49:30.000Doesn't it hurt my credit when I get so many credit cards at once?
00:49:32.000Can you kind of explain to them how credit reporting works and everything?
00:49:35.000So cool thing about the way we use it and we leverage it is we're getting business credit cards.
00:49:39.000So you have a personal credit report and you got a business credit report.
00:49:42.000The way we get them is business credit cards, but I told you, we personal guarantorum.
00:49:46.000So they're going to pull our personal credit for the approval.
00:49:49.000But all of the cards that we're going to get are going to report to our business side.
00:49:53.000So now, I don't have to worry about the utilization when I'm investing the money on the business side.
00:49:58.000Because on the personal side, if you use money off your credit card, the utilization hits you, you tank your credit score, it goes all the way down.
00:50:05.000The way we use it is we leverage the business credit cards because when we use our money on the business side, our personal credit still stays good and we can continue to go get access to capital for our business.
00:50:14.000So they report on the business side so we don't have to worry too much about utilization.
00:50:18.000And what about the, like, if you're getting, because you're getting like, you know, a couple of cards in quick succession within, I'm assuming within 48 hours of each other or something like that, right?
00:50:35.000So it's three credit bureaus, Experion, TransUnion, and Equifax, right?
00:50:40.000We have to go to certain banks that pull different bureaus so that we strategically can go get the money.
00:50:46.000So for example, I'll go to one bank that pulls TransUnion, I'll go to another bank that pulls then Experion, and I'll go to another bank that pulls Equifax.
00:50:53.000So now I got three different credit card approvals for $20,000 each, but to the banks, it only looked like I got one pull because each bank have a certain credit bureau that they pull from.
00:51:06.000I thought if you did like all your, well this is for business credit so this is different, but I figured like if you, because on the personal side if you apply for credit cards like a couple of them at the same time in a short succession people assume you're you know shopping for rates or whatever and it counts as one credit inquiry, but for business I guess is different.
00:51:28.000You don't want to start, you shouldn't start off trying to get funding with a lot of inquiries.
00:51:32.000Like, the way that I teach people how to build their credit reports out, we have zero inquiries.
00:51:36.000All the accounts that we get reported to your credit report, we don't want to get inquiries.
00:51:39.000Some people do that wrong and they go get all these stuff and they got a whole bunch of inquiries, now you can't go get funded because you got too much hungry and it's on your credit report.
00:51:46.000I think people didn't see what you just said earlier about different banks.
00:51:50.000He's saying go to different banks with different credit companies that they report to so you don't get recognized by it.
00:51:57.000Dude, that's some results right there, bro.
00:56:02.000So a lot of people have credit card debt.
00:56:05.000Best thing to do is build your business credit, get an approval in your business name, strictly in your business name, nothing to do with your personal.
00:56:11.000Liquidate the money off your business credit card to pay down your personal credit card utilization.
00:56:16.000Wait till your credit score go up, then go get business funding and transfer the debt from the personal side to the business side.
00:57:18.000Okay, Mario, not sure if you remember me from CC's Zoom call.
00:57:22.000I want to start my own exotic car rental business, but I have too much debt under my name.
00:57:26.000Had 200K of debt under my name, dropped it down to 100K. Would you say funding with Smitty will help get my car rental business started or wait and still work on getting rid of my debt?
00:57:35.000He wants to do an exotic car rental business, but he had 200K of debt under his name, dropped it down to 100K. Yeah, so...
00:57:42.000um you you would probably want to leverage your business name to get some other debt so you're going to take on a lot of debt when you got cars that's just that's just what he wants to do exotic cars yeah so your your debt gonna rise regardless of what you do that ain't going nowhere you're getting 200 000 pieces of debt every car you get you know what i mean so but what i would do is i would do this i'll give you a play that you can run right now bro if you got at least 700 credit score you need to go to bank of america Bank of America allows you to personally guarantee auto loans,
00:58:10.000but they allow you to get three or four auto loans in your business name with zero dollars down.
00:58:22.000They allow you to get three or four auto loans in your business name, no money down, and acquire multiple auto loans in that same sequence for only one hard inquiry pool.
00:58:30.000So that's a strategy I would use to be able to go get four auto loans.
01:01:34.000They want to see your wire for $80,000 in two days.
01:01:36.000Two days come, a wire come in my bank account.
01:01:38.000Oh my god, this is crazy because now, instead of me going to get one auto loan for $80,000, I went to go buy like six cash cars for $10,000 each.
01:04:17.000Navy Federal Credit Union and PSECU. Can anyone get a Navy Credit Union?
01:04:22.000We got strategies to get you in, but usually they typically say, you got to be in the army and all that stuff, but man, we get in all the time.
01:05:35.000That's where the magic is going to happen.
01:05:39.000So if they click the link in my bio, I have a free class there in the link in my bio.
01:05:42.000That can teach them the value and the frameworks, but getting into my mastermind is going to help them really scale this thing to the next level with what I do at a higher level.
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